Are you tripping over dollars to save pennies? I run into this situation a lot with sellers whether I am listing and or staging their property. Many sellers focus on how much cleaning, decluttering or repairing something costs and not on what they are potentially making off the sale. Yes, even in this market there are plenty of sellers with equity in their homes, just not as much as they "would have, should have or could have made" if they hypothetically sold it a few years ago.
I often hear the objections at two main intervals in the sales process.
1. When they list their home for sale and I give them a laundry list of things they need to do to prepare it for the market.
2. When they get a repair request and fight over minor (or sometimes not so minor) issues the buyer is asking to be repaired.
Why do sellers so often object to spending time or money to get these things done? Often because they feel cheated out of a hypothetical dollar amount they think they are not getting from the sale of their house. My goal is to get sellers to focus on the here and now, not the coulda beens. The best picture I can paint for a seller when they start objecting to spending money to get their house sold is to tell them not to trip over dollars to save pennies.
I usually get a perplexed look when I use this statement so I do some simple math for them:
On average if you farm everything out and do not do anything yourself, it takes about $2,000 to prepare a house for sale and for repairs.
$100-200 - average cost of a deep cleaning
$150-300 - shampoo carpets
$300-400 spruce up landscaping
$500-700 paint interior walls
$500-1000 average costs of repairs requested by a buyer
$1550-2600 average cost to prepare a house for sale
**$500 for materials if you do all the labor yourself
In the Charlotte, NC real estate market the average price for a home is around $210,000.00. If you purchased this home 10 years ago for $175,000, put a down payment on it (for this example we will use 5%) and have refrained from pulling out equity or cashing out money since you bought the house you will hypothetically owe $146,000. Obviously there are a variety of other scenarios and potential expenses in getting a home sold but for this story, I am keeping it simple.
$210,000 Sale Price
$146,000 Mortgage Balance
$51,400 Net Proceeds from Sale
I am a logical and rational person and my logic tells me to spend $500, $1,550 or $2,600 to get to $51,400. Are you tripping over dollars to save pennies? The cost to prepare a house to sell is relatively small in comparison to what most people stand to gain. While your math may be different I find that most sellers are tripping over dollars to save pennies when they object to the cost of preparing their home for sale.
This article was written by: Jennifer Manchester. If you want to learn more about Staging your Charlotte, NC home to sell contact Jennifer Manchester at www.JenniferManchester.com and make an appointment to give your home a competitive edge and use the ultimate home seller's marketing tool to beat out your competition and get your home sold faster.
If you would like to search homes for sale in Charlotte, NC or search homes for sale in Matthews, NC or search homes for sale in Mint Hill, NC and surrounding areas, you can see for yourself what is available. If you would like to meet with Jennifer Manchester to discuss buying or selling your home in the greater Charlotte, Matthews, Mint Hill area visit her at www.JenniferManchester.com to schedule an appointment today!